Use your conclusions from the previous question. The market value of a utilities company is $3 billion, and their continuous annual standard deviation is 40%. 66 The company financed its assets through a zerocoupon bond with a face value of $2 billion, with interest and principle to be repaid in nine years. Assume that the company does not distribute dividends. 67 The risk-free interest rate is 4%. a. Calculate the value of the company ’ s shares as a call option on its assets. b. What is the market value of the company ’ s debt? c. How would the company ’ s share value and debt value change if the risk-free rate increased to 6%? Explain the significance of your results